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Dzhalalov S.Ch.

Westminster International University in Tashkent

Dzhalalova D.Kh.

Tashkent Pharmaceutical Institute

Krahn M.D.

University of Toronto, Canad

Hoch J.S.

University of California

Incremental vs. average cost-effectiveness ratio: which one is preferable in health technology assessment?

Authors:

Dzhalalov S.Ch., Dzhalalova D.Kh., Krahn M.D., Hoch J.S.

More about the authors

Journal: Medical Technologies. Assessment and Choice. 2020;(3): 29‑35

DOI: 10.17116/medtech20204103129

Views: 3563

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INCREMENTAL VS. AVERAGE COST-EFFECTIVENESS RATIO: WHICH ONE IS PREFERABLE IN HEALTH TECHNOLOGY ASSESSMENT?
INCREMENTAL VS. AVERAGE COST-EFFECTIVENESS RATIO: WHICH ONE IS PREFERABLE IN HEALTH TECHNOLOGY ASSESSMENT?

To cite this article:

Dzhalalov SCh, Dzhalalova DKh, Krahn MD, Hoch JS. Incremental vs. average cost-effectiveness ratio: which one is preferable in health technology assessment? Medical Technologies. Assessment and Choice. 2020;(3):29‑35. (In Russ.)
https://doi.org/10.17116/medtech20204103129

 
 
Подписка 2025-2 (Medical Technologies. Assessment and Choice)
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Cost-effectiveness analysis is based on maximization of health effects in a given amount of limited resources. However, many published studies fail to report the results of analysis in a way that is consistent with the proposed goal. The aim of this article is to demonstrate different methods of cost-effectiveness analysis influencing interpretation of findings and conclusions. Literature data devoted to this issue are reviewed in the manuscript. Two hypothetical examples are used to illustrate weaknesses of average cost-effectiveness ratios, estimation of appropriate incremental cost-effectiveness ratios and exclusion of dominated alternatives. The authors hope that this article will be valuable to improve understanding and correct application of incremental cost-effectiveness ratio, so the results of cost-effectiveness analyses can be interpreted meaningfully by decision makers.

Keywords:

cost-effectiveness analysis
incremental cost-effectiveness ratio
average cost-effectiveness ratio
health technology assessment
cost
outcomes
economic evaluation

Authors:

Dzhalalov S.Ch.

Westminster International University in Tashkent

Dzhalalova D.Kh.

Tashkent Pharmaceutical Institute

Krahn M.D.

University of Toronto, Canad

Hoch J.S.

University of California

Received:

30.04.2019

Accepted:

30.06.2020

List of references:

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  2. Drummond MF, Sculpher MJ, Claxton K, Stoddart GL, Torrance GW. Methods for the Economic Evaluation of Health Care Programmes. 3rd edition. New York: Oxford University Press; 2005.
  3. Gold MR, Siegel JE, Russell LB, Weinstein MC. Cost-effectiveness in Health and Medicine. New York: Oxford University Press; 1996.
  4. Sloan FA. Valuing Health Care: Costs, Benefits, and Effectiveness of Pharmaceuticals and Other Medical Technologies. New York: Cambridge University Press; 1995.
  5. Laska EM, Meisner M, Siegel C. Statistical inference for cost-effectiveness ratios. Health Economics. 1997;6(3):229-242. https://doi.org/10.1002/(sici)1099-1050(199705)6:3<229::aid-hec268>3.0.co;2-m "> 3.0.co;2-m" target="_blank">https://doi.org/10.1002/(sici)1099-1050(199705)6:3<229::aid-hec268>3.0.co;2-m
  6. Briggs A, Fenn P. Trying to do better than average: a commentary on «statistical inference for cost-effectiveness ratios». Health Economics. 1997;6(5):491-495. https://doi.org/10.1002/(sici)1099-1050(199709)6:5<491::aid-hec293>3.0.co;2-r "> 3.0.co;2-r" target="_blank">https://doi.org/10.1002/(sici)1099-1050(199709)6:5<491::aid-hec293>3.0.co;2-r
  7. Laska EM, Meisner M, Siegel C. The usefulness of average cost-effectiveness ratios. Health Economics. 1997;6(5):497-504. https://doi.org/10.1002/(sici)1099-1050(199709)6:5<497::aid-hec298>3.0.co;2-v "> 3.0.co;2-v" target="_blank">https://doi.org/10.1002/(sici)1099-1050(199709)6:5<497::aid-hec298>3.0.co;2-v
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  10. Hoch JS, Dewa CS. A clinician’s guide to correct cost-effectiveness analysis: think incremental not average. Canadian Journal of Psychiatry. Revue Canadienne de Psychiatrie. 2008;53(4):267-274.  https://doi.org/10.1177/070674370805300408
  11. Getzen TE. Health Economics: Fundamentals and Flow of Funds. New York (NY): John Willey and Sons; 1997.
  12. Udvarhelyi IS, Colditz GA, Rai A, Epstein AM. Cost-effectiveness and cost-benefit analyses in the medical literature. Are the methods used correctly? Annals of Internal Medicine. 1992;116(3):238-244.  https://doi.org/10.7326/0003-4819-116-3-238
  13. Sintonen H, Alander V. Comparing the cost-effectiveness of drug regimens in the treatment of duodenal ulcers. Journal of Health Economics. 1990;9(1):95-101.  https://doi.org/10.1016/0167-6296(90)90042-2
  14. Han SH, Ofman J, Holt C, King K, Kunder G, Chen P, Dawson S, Goldstein L, Yersiz H, Farmer DG, Ghobrial RM, Busuttil RW, Martin P. An efficacy and cost-effectiveness analysis of combination hepatitis B immune globulin and lamivudine to prevent recurrent hepatitis after orthotopic liver transplantation compared with hepatitis B immune globulin monotherapy. Liver Transplantation: Official Publication of the American Association for the Study of Liver Diseases and the International Liver Transplantation Society. 2000;6(6):741-748.  https://doi.org/10.1053/jlts.2000.18702
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